Baked goods supplier Aryzta has reported €413.7m in revenue in its first quarter from its European operations.
Total European revenue – including the impact of disposals – declined 3.9%, with organic revenue down 0.9%.
Describing the organic performance as “relatively stable”, the business said performance had been solid in France, Hungary and Switzerland, with Germany remaining relatively stable despite the impact of insourcing. It did not reference the UK business.
Disposals, which comprised the sale of Signature Flatbreads and a 43% stake in French frozen food business Picard, had a 3.3% negative impact on the European business.
Most recently, Delice de France has been demerged from Aryzta through a management buyout. Under the deal, Delice de France will continue an ongoing exclusive relationship with Aryzta.
Total group revenue across Aryzta – including the North America and Rest of the World divisions – fell 2.5% on an organic basis to €843.9m.
Aryzta North America organic revenue fell 6.1% to €359.3m.
“FY19 established foundations on our path towards stability, performance and growth and Q1 FY20 revenue has performed in line with our expectations,” said Aryzta chief executive officer Kevin Toland.
He added that the he expected North America revenue to continue to decline in the second quarter, but to increase in the second half of the year from new contract volumes.
Toland said the company expected further EBITDA growth at a group level in the full year as the company felt the benefits of its Project Renew cost reduction programme.